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A in perpetuity NOT correct You are managing a portfolio of $1.0 million. Your target duration is 22 years and you can choose from two
A in perpetuity NOT correct
You are managing a portfolio of $1.0 million. Your target duration is 22 years and you can choose from two bonds: a zero-coupon bond with maturity five years, and a perpetuity, each currently yielding 2%. a. How much of () the zero-coupon bond and (i) the perpetuity will you hold in your portfolio? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Answer is complete but not entirely correct. Zero-coupon bond 63.04 39.96 (x% Perpetuity bondStep by Step Solution
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